2013 Summary Report on Global Citizenship

Across industries and around the globe, businesses and governments are recognizing the value proposition of todays Xerox. We have people who are passionate about making our communities better than they are a corporate culture that is committed to diversity and continuous improvement and an innovation community thats harnessing the potential of services and technologies for the promise of a better world.
Ursula M. Burns

Table of Contents Our Leadership Commitment..............................02 Our Progress................................................................04 Connecting With Us...............................Back Cover

This report is a snapshot of our comprehensive global citizenship activities. We invite you to learn more by visiting www.xerox.com/ citizenshipreport2013.

Our Leadership Commitment

Since our earliest days, Xerox has embarked on a never-ending journey to demonstrate that good business and good citizenship are not only compatible, but synergistic. Consider this 75 years ago, a patent attorney named Chester Carlson invented xerography. After spending countless hours in the New York Public Library hand-writing copies of materials he needed, he was determined to find a way to make office work a little more productive and a little less tedious. Along came Joseph C. Wilson, who bet his familys business on Carlsons invention. As our companys founder and the first chairman of Xerox, he was a man of deep social consciousness long before the phrase was part of the language of business. He communicated a set of core values in 1960 less than a year after we launched the modern-day Xerox that focused on our customers, our people, excellence, innovation and behaving responsibly as a corporate citizen. While just about everything in our industry has changed and changed again since then, these two men have a strong influence on Xerox today. We continue to innovate new ways to simplify complex and tedious tasks and the values first shared in the 60s continue to be the bedrock of our company. Today, we still live our beliefs and our values through our actions. We know that being a good corporate citizen is integral to our innovation and top-line performance. That thinking has taken us to some interesting places and produced some significant results. Weve evolved from the well-established copier company to the worlds leading enterprise for business process and document management. Through the broader business were building, Im more convinced than ever in the power of this company to help build a better, more sustainable world. In our 2013 Global Citizenship Report, youll find rich and concrete evidence of our progress. Youll read about our equipment and supplies return, reuse and re-manufacturing program and how weve diverted more than 2.2 billion pounds of waste from landfills worldwide. Youll learn why we continue to be recognized as having one of the most diverse workforces in the world, and why we are often viewed as one of the best places to work, to grow and to contribute. Youll see how our researchers are helping cities in the U.S., Latin America and Europe improve traffic flow and relieve traffic congestion. That means less fuel and less pollution. Youll find out about our efforts to broaden and expand the number of young people entering the fields of science, technology, engineering, and mathematics the STEM disciplines. Investments in innovation and in STEM have shaped our company for decades and will influence our future.

Through the broader business were building, Im more convinced than ever in the power of this company to help build a better, more sustainable world.
Youll learn about how much of our business today is centered on helping our customers reduce their reliance on paper through software- and service-based solutions that take paper out of the mix and digitally move transactions, like health insurance claims and loan applications, into faster, simpler, more accurate and more sustainable workflows.

Xerox 2013 Summary Report on Global Citizenship 2

Our commitment to sustainability doesnt stop there. This report is also filled with numbers. In our big data world, numbers speak volumes about results. They influence your business decisions and they influence the way we run our business. Just about every Request For Proposal we see these days wants to know how were making the world a better place from our environmental stewardship and sustainability to ethical governance and community involvement. And in just about every case, we can come up with a triple-bottom-line benefit good for our customers, good for Xerox and good for the planet.

Across industries and around the globe, businesses and governments are recognizing the value proposition of todays Xerox. We have people who are passionate about making our communities better than they are a corporate culture that is committed to diversity and continuous improvement and an innovation community thats harnessing the potential of services and technologies for the promise of a better world. Chester Carlson was on to something 75 years ago. And, today at Xerox, we continue to believe our purpose is to simplify how work gets done. When we do just that in smart, sustainable ways, our hope is that the world works a little better for the next 75 years and beyond.

I think Chester Carlson and Joe Wilson would like the evolution of the company they founded. Take a look inside and see for yourself. Then, let us know what you think. Feedback from our stakeholders keeps us grounded and on a steady path for improvement. Feel free to email us at citizenship@xerox.com with your thoughts. Thanks for your interest.

Chairman and Chief Executive Officer

3 Xerox 2013 Summary Report on Global Citizenship

Our Progress
Sustaining Business Evolving The Workplace Evolving The Workplace Evolving The Workplace Evolving The Workplace

Independence of the Board

Employee Satisfaction

Employee Inquiries

Diversity: Women in Management

Diversity: Minorities in Management

90%

Board Independence

Satisfied Employees

75%

Received and Routed for Resolution

2,745

of Senior Managers in U.S.

26%

of Senior Managers in U.S.

13.6%

Evolving The Workplace

Evolving The Workplace

Serving Customers

Serving Customers

Serving Customers

Recordable Injury Rate

Days Away from Work Case Rate

Equipment Market Share

Patents Awarded to Xerox

Customer Service

5%

Increase from 2011

Increase from 2011

13%

Equipment Revenue Market Share

#1

Patents Granted

1,900+

Customer Service Experience

A+

Serving Customers

Caring for Communities

Caring for Communities

Preserving the Planet

Preserving the Planet

Market Leadership

Xerox Foundation Giving

Employees in Community Activities

Reuse/Recycle Rate

Water Consumption

Confirmed Industry Leader

Millions in Grants and Giving

$13.5

Employees, 713 Projects

12K+

of Nonhazardous Solid Waste Recycled

93%

Reduction from 2011

17%

Preserving the Planet

Preserving the Planet

Preserving the Planet

Preserving the Planet

Preserving the Planet

Greenhouse Gas Emissions

Achieving ENERGY STAR Rating

Landfill Avoidance Rate

Scope 3 GHG Emissions

Energy Use Reduction

9%

Reduction from 2011

of New Products

100%

of Customer Returned Equipment, Parts and Supplies

99.3%

Reduction in GHG Emissions from Air Travel

14%

from Energy Challenge Baseline Year 2002

33%

Xerox 2013 Summary Report on Global Citizenship 4

Our Progress
Sustaining Business
Independence of the Board Year Results Highlights: 2009 80% 2010 88% 2011 90% 2012 90%

Based on standards for independence developed by the New York Stock Exchange, the Xerox Board of Directors is currently 90% independent. It includes one non-independent director: Xerox Chairman and CEO Ursula M. Burns. Learn more about the Boards independence and our governance policies: www.xerox.com/governance.

Improving the Workplace

Employee Satisfaction Year Results 2009 77%*
*North American data only.

2010 72%**
** Global data based on 72,000 survey results. The North American percentage agreement is 82%.

2011 74%

2012 75%***
*** Data based on over 14,000 survey results from three geographies in the Xerox Technology line of business: Xerox Europe, Xerox Canada, and Developing Markets.

Highlights:

Our proprietary Voice of the Employee Survey allows managers to create a personal pulse survey to assess their employees satisfaction on their job, workgroup, manager, and on Xerox as a whole. Since 2009, we have surveyed 100% of our global population of 48 countries and in 25 languages. Each manager receives a personalized report to assist in developing action plans where needed. In addition, we capture global trend data and employee ideas. The Voice of the Employee survey will be globally implemented again in 2013, and every two years thereafter.

Employee Inquiries Year Results 2009 4,106 inquiries received and routed for resolution 2010 6,698 inquiries received and routed for resolution 2011 3,291 inquiries received and routed for resolution 2012 2,745 inquiries received and routed for resolution

Highlights:

The Sentinel Customer Satisfaction Assurance System, a Xerox proprietary Web-based polling/routing/reporting system, links employee inquiries or comments through the intranet with appropriate Xerox contacts to identify and track any comment, suggestion, or unresolved problem for action. The decline in inquiries from 2011 to 2012 is due to the overall resolution of systemic issues in the system and the ability for employees to provide comments/suggestions or raise technical issues, which are routed to another system for resolution.

5 Xerox 2013 Summary Report on Global Citizenship

Diversity: Women in Management Year Results Highlights: 2009 31.8% 2010 49.7% 2011 49.8% (U.S. only) 2012 40.8% (U.S. only)

We gain a competitive advantage as we continue to draw on the experience and creativity of a well-balanced, diverse workforce. That means were better able to understand and meet the changing demands for our products and services. Simply stated, a balanced workforce makes good business sense. 52.3% of employees in the U.S. are women, and women represent 26% of the executive and senior level managers in the U.S. Diversity reporting is not tracked in most other countries. The decline from 2011 is due to the inclusion of our Services business.

Diversity: Minorities in Management Year Results Highlights: 2009 20.2% 2010 22.7% 2011 37.5% (U.S. only) 2012 23.4% (U.S. only)

Employees with different ways of thinking and different ways of perceiving our world are employees who create innovative solutions. In a business like ours, whose lifeblood is fresh ideas, this variety of perspectives is a priceless resource and a key to achieving critical business results. Minorities represent 39.4% of employees and 13.6% of the executive and senior level managers in the U.S. Diversity reporting is not tracked in most other countries. The decline from 2011 is due to the inclusion of our Services business.

Recordable Injury Rate Year Results Highlights: 2009 Down 7% from 2008 2010 Up 18% from 2009 2011 Down 1% from 2010 2012 Up 5% from 2011

Improved injury reporting from our worldwide operations and the redistribution of our employee work assignments have resulted in increased injury rates. In 2012, we continued a safety improvement project initiated to improve employee safety awareness and management inspection of safe work practices. We also further expanded our health/safety/wellness communications to our technician workforce.

Xerox 2013 Summary Report on Global Citizenship 6

Days Away from Work Case Rate Year Results Highlights: 2009 Down 4% from 2008 2010 Up 4% from 2009 2011 Up 6% from 2010 2012 Up 13% from 2011

Improved injury reporting from our worldwide operations and the redistribution of our employee work assignments have resulted in increased injury rates. In 2012, we continued a safety improvement project initiated to improve employee safety awareness and management inspection of safe work practices. We also further expanded our health/safety/wellness communications to our technician workforce.

Serving Customers
Equipment Revenue Market Share Year Results Highlights: 2009 #1 in Q4 2010 #1 2011 #1 2012 #1

Xerox is the leader in equipment revenue market share for the 13th straight quarter (4Q2012). We offer the industrys broadest portfolio of document technology and services for businesses of any size, in any industry, anywhere around the world.

Patents Awarded to Xerox* Year Results Highlights: 2009 1,131 2010 1,605 2011 1,618 2012 1,900

Xerox was granted 1,215 U.S. patents in 2012, ranking the company as one of the worlds top innovators. Our joint venture in Japan, Fuji Xerox Co. Ltd., received 686 U.S. patents. The Xerox group garnered 1,900 patents total. Xerox and Fuji Xerox collectively invest about $1.5 billion annually in research, development and engineering.
*Total patents earned along with Fuji Xerox Group

Customer Service Year Results 2009 Achieved certification in the J.D. Power and Associates program for Certified Technology Service and Support. 2010 Achieved certification in the J.D. Power and Associates program for Certified Technology Service and Support. 2011 In 2011, we chose to invest in a new customer satisfaction process to ensure a stronger focus on understanding and fulfilling customer needs and expectations. 2012 In 2012, we continued our investment in a new customer satisfaction process to ensure our award-winning service and customer-centric approach build customer loyalty and trust. Its a core competency and a competitive advantage for Xerox.

7 Xerox 2013 Summary Report on Global Citizenship

Highlights:

Service and support for Xerox products earned five consecutive industry certifications from 2006-2010 under the J.D. Power and Associates Certified Technology Service and Support ProgramSM. All forms of customer support phone, online, on-site were evaluated by independent service industry experts who recognized our support services as among the best in class. These certification reviews have ensured we maintain process excellence in technical service delivery. In 2011, we chose to invest in a new customer satisfaction process to ensure a stronger focus on understanding and fulfilling customer needs and expectations. The new process solicits feedback from our technology customers around the globe and provides detailed insights that help us identify systemic issues and make the necessary changes that ensure strong customer satisfaction. Improved closed-loop follow-up processes also enable faster responses to individual problems.

Market Leadership Year Results 2009 Gartner, Inc.: Leaders Quadrant in the Magic Quadrant for Managed Print Services Worldwide, CRM Contact Center BPO for North America, and Comprehensive Human Resources Business Process Outsourcing. 2010 Gartner, Inc.: Leaders Quadrant in the 2010 Magic Quadrant for Managed Print Services Worldwide, MFPs and Printers, and Finance and Accounting Business Process Outsourcing. Visionaries Quadrant for Enterprise Content Management (ECM). IDC: A leader in Worldwide and U.S. Outsourced Print and Document Services Forecast and Analysis and in IDCs 2010 MPS MarketScape report. 2011 Gartner, Inc.: Leaders Quadrant in the 2011 Magic Quadrant for Managed Print Services Worldwide. Global leader in the Comprehensive Finance and Accounting Business Process Outsourcing arena; noted our leadership for Help Desktop Outsourcing Services in North America. IDC: Market Leader for Managed Print Services in IDCs 2011 MarketScape report. 2012 Gartner, Inc.: Leaders Quadrant for Managed Print Services; Comprehensive Finance and Accounting BPO, Global; Customer Management Contact Center BPO, Worldwide; Help Desk Outsourcing, North America; Desktop Outsourcing Services, North America. Challenger in Data Center Outsourcing and Infrastructure Utility Services, North America. Niche Player for e-Discovery Software. IDC: Major Player for Managed Print Services and Comprehensive HRO in MarketScape. Forrester: Leader in Managed Print Services in The Forrester Wave. Highlights: The Xerox commitment to our customers has gained worldwide recognition. Independent industry analysts rate our products and services as leaders in multiple categories. Helping customers better manage their print environment led Xerox to achieve the grand slam in Managed Print Services recognition by being named by the top analyst companies IDC, Gartner, Forrester, and Quocirca as an industry leader.

Xerox 2013 Summary Report on Global Citizenship 8

Caring for Communities

Xerox Foundation Giving Year Results Highlights: 2009 $12.0 million 2010 $12.5 million 2011 $13.5 million 2012 $13.5 million

In 2012, 2,676 nonprofit organizations, colleges and universities received direct financial support from the Xerox Foundation through grants, matching gifts or community involvement activities. We focus our investments in the following areas: Education and workforce preparedness Science and technology Environmental affairs Employee and community affairs National and cultural affairs

Employees in Community Activities Year Results 2009 8,650 Employees 648 Projects $978,018 2010 10,137 Employees 712 Projects $1,009,584 2011 12,291 Employees 751 Projects $1,000,000+ 2012 12,713 Employees 713 Projects $2,180,629

Highlights:

The Xerox Community Involvement Program marries the voluntary spirit of our employees with Xerox funding to participate in the betterment of the communities where we live and work. In addition to our community involvement funding, in 2012, 11 Xerox employees were awarded fully paid Xerox social service leave sabbaticals, dedicating their time to organizations in need of their business acumen.

Preserving the Planet

Reuse/Recycle Rate of Non-hazardous Solid Waste Year Results Highlights: 2009 91% 2010 89% 2011 91% 2012 93%

In 2012, our facilities in Dundalk, Ireland, joined the Emulsion Aggregation Toner manufacturing operations in Webster, New York, Wilsonville, Oregon, and Venray, Netherlands, in achieving zero waste to landfill.

9 Xerox 2013 Summary Report on Global Citizenship

Water Consumption Year Results Highlights: 2009 Down 7% from 2008 2010 Down 7% from 2009 2011 Down 15% from 2010 2012 Down 17% from 2011

As part of our commitment to conserve resources, we monitor water consumption across our manufacturing, distribution and R&D facilities worldwide. Water consumption decreased 35% over baseline year of 2009.

Greenhouse Gas Emissions Year Results 2009 Down 11% from 2008 2010 Down 3% from 2009 2011 Down 9% from 2010 Down 36% from 2002 2012 Down 9% from 2011 Down 42% from 2002

Highlights:

Since 2002, Scope 1 and 2 greenhouse gas emissions are down 42% in our Document Technology business. The reductions are the result of improved energy efficiency, new technologies and improved energy management practices. We are making progress with our Scope 3 emissions assessments. Our calculations are made according to the WRI Scope 3 Accounting Standard. We will continue to use the information to prioritize our greenhouse gas emission reduction opportunities and as part of our carbon impact assessments.

Achieving ENERGY STAR Rating Year Results Highlights: 2009 92% 2010 100% 2011 100% 2012 100%

In 2012, 100% of all our new eligible products met the current ENERGY STAR (July 2009) requirements. Continued success in cutting the power consumption of our laser-based printing products has been achieved by adjustments in the fuser design, changes to the properties of the toner, more efficient electronic controls and the workings of the xerographic system as a whole.

Landfill Avoidance Rate Year Results Highlights: 2009 98% 2010 97% 2011 98% 2012 99.3%

Our approach to managing products at end-of-life translates into significant environmental and financial benefits. Globally, our combined returns programs (equipment remanufacture in conjunction with parts and consumables reuse and recycling) prevented over 42,000 metric tons of waste from entering landfills in 2012 alone.

Xerox 2013 Summary Report on Global Citizenship 10

Greenhouse Gas Emissions from Employee Business Air Travel Year Results Highlights: 2009 12 2010 14 2011 12, down 14% from 2010 2012 11, down 8% from 2011

We are in the process of expanding greenhouse gas (GHG) tracking to include Scope 3 emissions, beginning with employee business travel. We measured these 2012 Scope 3 emissions at 11,000 metric tonnes of carbon dioxide equivalents (CO2e), down 8% from 2011. A decrease in employee air travel has been achieved through the increased use of videoconferencing and other technology. We have also added measurement of Scope 3 emissions from Product Transport to our 2012 reporting please see Metrics Chart in our 2013 Environment, Health, Safety and Sustainability Report. We are making progress with our Scope 3 emissions assessments. Our calculations are made according to the WRI Scope 3 Accounting Standard. We will continue to use the information to prioritize our GHG emission reduction opportunities and as part of our carbon impact assessments.

Energy Use Reduction Year Results Highlights: 2009 21% 2010 22% 2011 27% 2012 33%

We are proud to announce that through the teamwork of Xerox people worldwide, we have achieved and surpassed our goals for the Xerox Energy Challenge 2012 program. In 2003, we established a program and made a public commitment to reduce greenhouse gas (GHG) emissions by joining the U.S. EPA Climate Leaders program and launching an internal program known as Energy Challenge 2012. We adopted a goal of reducing by 10% our absolute GHG emissions across all company operations by 2012, from a 2002 baseline. We met this target six years ahead of schedule and in 2007, we set a new and challenging goal to reduce our GHG emissions by 25% by 2012, from the 2002 baseline. At the conclusion of the corporate Energy Challenge 2012 program, we successfully reduced emissions by 42%, or 210,000 tons of CO2e, while saving energy consumption was down 33% compared with 2002.

11 Xerox 2013 Summary Report on Global Citizenship

Materiality
In order to determine materiality, we examined changing external factors, including regulations and standards; social challenges people face around the world; our evolving business model; and the environmental impact on our products, services, processes and operations. Our assessment included an array of fact-finding forums, including interviews and workshops with internal stakeholders and Xerox leaders. It also included reviews of public and internal Xerox documents; discussions with our suppliers; and feedback from our employees. We concluded: Product- and Service-related opportunities, such as improving energy efficiency and expanding access to technology, represent the leading areas where we can create value for society and for our business. Managing our operations responsibly from decreasing environmental impacts to protecting customer privacy to promoting diversity and ensuring ethical behavior is important to our company. Enhancing health, safety and labor conditions in our global supply chain is among the most important ways we can drive sustainable development. With these findings, we confirmed the relevancy and importance of our four environmental goals and priorities that apply across the value chain; our partnerships with non-government organizations, customers, academia, and regulatory agencies; and the Code of Conduct to which we hold our employees and global suppliers accountable. The schematic below summarizes the results of our materiality assessment for corporate social responsibility.

Xerox 2012 Materiality Assessment

Importance to sustainable development
High
Responsible paper sourcing Sustainable buildings Energy and GHG emissions in operations Energy/GHGs in supply chain Waste in operation Substances of concern in products Employees in community activities Water in operations Climate resilience and adaptation Product transport and logistics Disposition of electronic waste Supply chain codes and standards Product reuse and recycling Sustainable products and services Climate change risks

Packaging

Ethical behavior Partnerships Diversity Xerox Foundation

Low

Employee travel Water in supply chain

Board structure and independence Supplier diversity Employee outreach programs

Occupational health and safety Employee training and development Employee health and wellness

Low

High

Importance to our business stability and growth

Sustaining Business Caring for Communities Evolving the Workplace Preserving the Planet Serving Customers

Xerox 2013 Summary Report on Global Citizenship 12

Connecting With Us
If you have questions or comments about any of the topics covered in this report, heres how to reach us. Xerox Corporation 45 Glover Avenue Norwalk, CT 06856-4505 United States 203.968.3000 www.xerox.com Products and Services www.xerox.com or by phone: 800.ASK.XEROX (800.275.9376) @XeroxSupport Additional Information The Xerox Foundation: 203.849.2478 Email: evelyn.shockley@xerox.com Diversity Programs and EEO-1 Reports: 585.423.6157 www.xerox.com/diversity Minority and Women-Owned Business Suppliers: 585.423.3150 www.xerox.com/supplierdiversity Ethics Helpline: 866.XRX.0001 North America; International numbers and Web submission tool on www.xerox.com/ethics Email: ethics@xerox.com Environment, Health, and Safety Progress Report: 800.828.6571, prompts 1, 3 www.xerox.com/environment Governance: www.xerox.com/governance Questions from Students and Educators: Email: nancy.dempsey@xerox.com Xerox Innovation: www.xerox.com/innovation To comment on this report: Email: citizenship@xerox.com

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2013 Xerox Corporation. All rights reserved. Xerox, Xerox and design, and Sentinel Customer Satisfaction Assurance System are trademarks of Xerox Corporation in the United States and/or other countries. Energy Star is a registered trademark of the Environmental Protection Agency. The Forrester Wave is a trademark of Forrester Research, Inc. J.D. Power and Associates Certified Technology Service and Support Program is a service mark of the McGraw-Hill Companies, Inc. BR7614